Chapter 1 | Môn Brand Management - Trường Đại học Quốc tế, Đại học Quốc gia Thành phố Hồ Chí Minh

lOMoAR cPSD| 59085392 CHAPTER 1: BRANDS AND BRAND MANAGEMENT lOMoAR cPSD| 59085392 Learning Objectives
 Define “brand,” state how brand differs from a
product, and explain what brand equity is
 Summarize why brands are important
 Explain how branding applies to virtually everything
 Describe the main branding challenges and opportunities
 Identify the steps in the strategic brand management process What is a Brand? lOMoAR cPSD| 59085392 Brand Elements lOMoAR cPSD| 59085392 Brands versus Products lOMoAR cPSD| 59085392 Brand Elements lOMoAR cPSD| 59085392 Brand Elements
 Different components that identifies and differentiates a brand
Name, logo, symbol, package design, or other characteristic
 Can be based on people (Porsche automobile),
places (British Airways), animals (Mustang
automobile, Dove soap), and others (Apple computers). Brand Elements  Umbrella brands
 Parmalat, Samsung and General Electric lOMoAR cPSD| 59085392  Mixed brands
 Procter & Gamble (Tide, Pampers, Pantene etc.)
 Unilever (Dove soap, Rexona deodorant, Knorr chicken
stock cubes, Magnum ice cream etc.) Brand versus Product Brand Product
Has dimensions that differentiate it in
Anything available in the market for use
some way from other products designed or consumption, that may satisfy a need to satisfy the same need.
or want. Thus, products may be a
These differences may be rational and
physical good, a service, a retail outlet,
tangible or more symbolic, intangible
a person, an organization, a place or and emotional. even an idea. lOMoAR cPSD| 59085392
Can be differentiated on the basis of:
Can be categorized into five levels • Packaging namely: • Services provided • Core benefit level • Customer advice • Generic product level • Financing • Expected product level • Delivery arrangements • Augmented product level • Warehousing • Potential product level
• Other things valued by the customers
Example of different Product Levels lOMoAR cPSD| 59085392 To Sum Up ....
 Through branding, organizations:
 Create perceived differences amongst products
 Develop loyal customer franchise lOMoAR cPSD| 59085392
 Create value that can translate to financial profits To Sum Up ....
 Brands with competitive  Brands with competitive
advantages with advantages with nonproduct
performance product-related means lOMoAR cPSD| 59085392
The World’s Most Innovative Companies 2017, Forbes Branding brief 1-1 lOMoAR cPSD| 59085392  Coca-Cola branding lesson Why Do Brands Matter? lOMoAR cPSD| 59085392 Consumers Firms Consumers
 Encompass all types of customers, including
individuals as well as organizations
 Functions provided by brands to consumers
 Identify the source or maker of the product
 Simplify product decisions lOMoAR cPSD| 59085392
 Lower the search costs for products internally (how
much you have to think) and externally (how much you have to look around)
 Helps set reasonable expectations about what
consumers may not know about the brand Consumers
 Signal product characteristics and attributes
◼ On the basis of attributes products can be classified as:
◼ Search goods (consumers evaluate product attributes)
◼ Experience goods (consumers cannot assess product attributes)
◼ Credence goods (consumers may rarely learn product attributes)
 Reduce risks in product decision
◼ These risk can be categorised as
◼ Functional, physical, financial, social, psychological, and time lOMoAR cPSD| 59085392 Consumers
 Functional – The product does not perform up to expectations (e.g. Duracell)
 Physical – The product poses a threat to the physical
well-being or health of the user or others
 Financial – The product is not worth the price
 Social – The product results in embarrassment from others (e.g. Heineken)
 Psychological – The product affects the mental wellbeing of the user
 Time – The failure of the product results in an
opportunity cost of finding another satisfactory product Consumers lOMoAR cPSD| 59085392
 Brands take on unique, personal meanings to consumers
that facilitate their day-to-day activities and enrich their lives.
 The ability of a brand to simplify decision making and reduce risk is invaluable. Firms
 Brands provide valuable functions
 Simplify product handling and tracing
 Help organizing inventory and accounting records
 Offer the firm legal protection for unique features or
aspects of the product (e.g. trademarks, patents and copyrights)
 Provide predictability and security of demand for the
firm and creates barriers of entry for competitors lOMoAR cPSD| 59085392
 Provide a powerful means to secure competitive advantage Firms
Provide predictability and security of demand for the
firm and creates barriers of entry for competitors versus lOMoAR cPSD| 59085392 iPhone HiPhone Mimetism lOMoAR cPSD| 59085392 Commercial Mimetism lOMoAR cPSD| 59085392 Commercial Mimetism